Consolidated Financial Results
for the Three Months Ended March 31, 2023
[Japanese GAAP]May 15, 2023

Company name: JAC Recruitment Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 2124
URL: https://corp.jac-recruitment.jp
Representative: Hiromi Tazaki, Co-Founder, Chairman, CEO and Managing Director
Inquiries: Toshihiko Okino, Director, Head of Administration HQ and CFO
Phone: +81-3-5259-6926
Scheduled date of filing quarterly securities report: May 15, 2023
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Available
Scheduling of quarterly financial results briefing: Not scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended March 31, 2023 (January 1, 2023 to March 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)

Net Sales
Three months ended million yen
March 31, 2023
8,746
March 31, 2022
7,471

(Note) Comprehensive income:Operating Income% million yen

17.1
25.7

% million yen

2,156
2,311

Profit Attributable to
Owners of Parent

Ordinary Income

(6.7)
28.5

% million yen

2,170
2,319

(6.4)
28.9

Three months ended March 31, 2023: ¥1,524 million [(10.9)%]
Three months ended March 31, 2022: ¥1,709 million [33.7%]

Earnings Per ShareThree months ended
March 31, 2023
March 31, 2022

1,485
1,638

%

(9.3)
36.6

Diluted Earnings
Per Share

yen

yen

37.02
40.58

–
–

(Note) Diluted earnings per share are not presented as there were no dilutive shares.
(2) Consolidated Financial Position

As ofMarch 31, 2023
December 31, 2022

(Reference) Equity:

Total Assets

Net Assets

million yen

Equity Ratio

million yen

17,25322,084%

12,63015,58573.2
70.6

As of March 31, 2023: ¥12,630 million
As of December 31, 2022: ¥15,585 million

2. Dividends

1stQuarter-end
Fiscal year ended December 31, 2022
Fiscal year ending December 31, 2023
Fiscal year ending December 31, 2023
(Forecast)yen

Annual Dividends
2nd
3rd
Year-end
Quarter-end
Quarter-end

–
–

yen

yen

–

80.00

80.00

0.00

–

85.00

85.00

0.00

(Note) Revision to the forecast for dividends announced most recently: None

-1-

yen

Total
yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2023 (January 1, 2023 to
December 31, 2023)(% indicates changes from the previous corresponding period.)

Net Sales
million yen%

Operating Income

Ordinary Income

million yen

million yen%%

First half
(Cumulative)
17,852
20.4
4,314
10.3
4,331 10.3
Full year
36,651
20.4
7,770
10.3
7,783 10.4
(Note) Revision to the financial results forecast announced most recently: None

Profit Attributable to
Owners of Parent

Earnings
Per Share

million yen

%

yen

3,010
5,417

10.2
7.7

74.43
133.88*Notes:(1) Changes in significant subsidiaries during the three months ended March 31, 2023 (changes in specified subsidiaries
resulting in changes in scope of consolidation): None
New: –
Excluded: –Notes on changes in significant subsidiaries during the period(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes
Notes on accounting policies adopted specially for the preparation of quarterly consolidated financial statements(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
Notes on changes in accounting policies(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
As of March 31, 2023: 41,389,300 shares
As of December 31, 2022: 41,389,300 shares2) Total number of treasury shares at the end of the period:
As of March 31, 2023: 1,506,635 shares
As of December 31, 2022: 1,005,871 shares
3) Average number of shares during the period:
Three months ended March 31, 2023: 40,130,714 shares
Three months ended March 31, 2022: 40,364,561 shares
Notes on the total number of issued shares*These quarterly financial results are outside the scope of quarterly review by a certified public accountant or an audit
firm.
*Disclaimer Regarding the Use of the Financial Results Forecast and Other Special Notes
The financial results forecast and other forward-looking statements in this document are based on information
currently available and certain assumptions the Company deems to be reasonable. Actual results may differ significantly
from these forecasts due to a variety of factors. For the assumptions used for the financial results forecasts and the notes
regarding the use thereof, please refer to “(3) Explanation of Consolidated Financial Results Forecast and Other
Forward-looking Information” on page 3 of the attachment.
We will post supplementary briefing materials for quarterly financial results on our website immediately after
disclosing this consolidated financial results.

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Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results ........................................................................ 2(1) Explanation of Operating Results ...................................................................................................... 2(2) Explanation of Financial Position ...................................................................................................... 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .. 3
2. Quarterly Consolidated Financial Statements and Principal Notes ...................................................... 4(1) Quarterly Consolidated Balance Sheets ........................................................................................... 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ................................... 6(3) Notes to Quarterly Consolidated Financial Statements .................................................................... 8(Notes on going concern assumption) ............................................................................................... 8(Notes in case of significant changes in shareholders’ equity) ........................................................... 8(Accounting methods adopted particularly for the preparation of quarterly consolidated financial
statements) ........................................................................................................................................ 8(Segment information, etc.) .............................................................................................................. 9-1-

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the three months ended March 31, 2023, while the Japanese Government decided to downgrade the legal
status of COVID-19 to “Class 5,” the Bank of Japan’s Tankan Survey released in March indicated that businesssentiment among large manufacturing companies fell for the fifth consecutive quarter with increasing uncertainty
over the global economic outlook mainly in Europe and the United States due to factors such as the prolonged
situation in Russia and Ukraine and global rise in prices and interest rates, and in addition, financial uncertainty
arisen in association with the foregoing.
Under these circumstances, in Japan, many companies were focused on hiring for the regrowth of theirbusinesses and securing of diverse human capital, and the jobs-to-applicants ratio remained robust. The moves torefrain from hiring employees were seen mainly among foreign companies and leading IT companies. The
Domestic Recruitment Business, the Group’s core operations, was among those affected by these moves, and in
the period under review, it recorded slightly lower net sales for the Group overall than what was planned at the
beginning of the period.
In the Domestic Recruitment Business which accounts for about 90% of consolidated net sales, businesssegments related to Japanese companies have maintained the productivity on a par with the same period of theprevious fiscal year. Going forward, we intend to boost the productivity of the entire business by working to
optimize allocation of persons in charge as well as focal job offers and improve management even further, while
paying close attention to moves of foreign companies and leading IT companies. At the same time, we will
promote thorough implementation of Group-wide Account Management efforts (management of major clientcompanies in an organized way) and reinforcement of regional offices, and strive to expand business by, forexample, strengthening ongoing initiatives related to executive and multi-national-company (MNC) markets anddeveloping new markets in Sendai and Hamamatsu where we opened new offices in April. In addition, we haveacquired consultant staffs in accordance with what was planned at the beginning of the period, and secured highservice quality through the education provided based on the “JAC Standard” that we have been working on since
the previous fiscal year as what all consultants of the Group must achieve. We will continue increasing the numberof staff as planned.
Regarding the Overseas Business, business results continued to improve mainly in Europe and Singapore.
However, we have seen a prolonged slump in the China region and the Shanghai office ceased operations at theend of February this year. While continuing to consider downsizing or withdrawing from unprofitable sites in atimely manner, we will promote active opening of sites in regions where future business growth can be expected,
such as the Los Angels office in the U.S. which started operation in January this year and the Bangalore office insouthern India which we opened in February this year.
As for the Domestic Job Offer Advertising Business, we recorded a small amount of loss due to a decreasein net sales affected by the reduced hiring by foreign companies which are the main customers for this businesssegment. In the future, we intend to recover earnings by increasing contact points with existing client companies,
and strengthening efforts to cultivate new client companies, including Japanese companies, which are expected
to have demand for bilingual human resources.
While selling, general and administrative expenses have been in line with what was planned at the
beginning of the period, we will review costs as necessary while prioritizing to achieve the previously announced
estimated profits. We also work to improve the operational efficiency of the entire Group by promoting thebusiness process reengineering (BPR) for the core information systems, operational processes, etc. based on the
results of the analysis of the current situations conducted in 2022.
As a result, for the three months ended March 31, 2023, net sales reached ¥8,746 million (up 17.1% year
on year). By segment, the Domestic Recruitment Business, the Domestic Job Offer Advertising Business, and theOverseas Business had net sales of ¥7,756 million (up 15.7% year on year), ¥73 million (down 6.3% year onyear), and ¥916 million (up 32.8% year on year), respectively.
In terms of profit, operating income was ¥2,156 million (down 6.7% year on year), ordinary income was¥2,170 million (down 6.4% year on year), and profit attributable to owners of parent was ¥1,485 million (down
9.3% year on year). By segment, the Domestic Recruitment Business posted ¥2,161 million in profit (down 6.0%
year on year). The Domestic Job Offer Advertising Business posted ¥9 million in loss (decreased ¥3 million year
on year), and the Overseas Business posted ¥17 million in profit (down 19.6% year on year).

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The following is the sales performance by segment for the three months ended March 31, 2023:
Segment
Net sales (Million yen)
Year-on-year comparison (%)
Domestic Recruitment Business

7,756

115.7

Domestic Job Offer Advertising
Business

73

93.7

Overseas Business

916

132.8

8,746

117.1

Total
(Note) Intersegment transactions were eliminated.

The following is the sales performance by segment and industry
Segment/industry
Net sales (Million yen)

Year-on-year comparison (%)

1. Domestic Recruitment BusinessElectrical, machinery, chemical

2,749

125.1

Consumer goods, services

1,547

107.9

Medical, healthcare

1,242

118.4

IT, telecom

1,089

91.5

Consulting

754

175.4

Financial services

336

96.8

Other

35

68.3

7,756

115.7

73

93.7

916

132.8

8,746

117.1

Domestic Recruitment Business Total
2. Domestic Job Offer Advertising
Business
Domestic Job Offer Advertising
Business Total
3. Overseas Business
Overseas Business Total
Total(Note) Intersegment transactions were eliminated.

(2) Explanation of Financial Position
Total assets at the end of the first quarter ended March 31, 2023 decreased by ¥4,831 million from the end of theprevious fiscal year to ¥17,253 million. Cash and deposits decreased by ¥4,614 million as a result of dividend
payments, and deferred tax assets decreased by ¥461 million, even though accounts receivable - trade increasedby ¥347 million.
Liabilities decreased by ¥1,876 million from the end of the previous fiscal year to ¥4,622 million. Accrued
expenses decreased by ¥2,056 million and income taxes payable decreased by ¥881 million, although provision
for bonuses increased by ¥971 million.
Net assets decreased by ¥2,955 million from the end of the previous fiscal year to ¥12,630 million, and theequity ratio came out to be 73.2%. The Company posted profit attributable to owners of parent of ¥1,485 million,
but paid dividends of surplus totaling ¥3,278 million and treasury shares increased by ¥1,200 million.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Regarding the consolidated financial results forecast for the six months ending June 30, 2023, and the fiscal year
ending December 31, 2023, there is no change from the consolidated financial results forecast released on
February 13, 2023.
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2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of December 31, 2022

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Supplies
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Total intangible assets
Investments and other assets
Investment securities
Investments in capital
Lease and guarantee deposits
Claims provable in bankruptcy, claims provablein rehabilitation and other
Long-term prepaid expenses
Deferred tax assets
Long-term accounts receivable - other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

As of March 31, 2023

14,879
2,244
7
413
283
(7)
17,82010,265
2,592
2
505
129
(13)
13,482

421
(220)
201
66
(35)
30
0
(0)
–
383
(237)
145
4
(2)
2
0
401
(36)
364
745

440
(229)
211
66
(38)
28
0
(0)
–
397
(250)
147
4
(2)
1
9
397
(24)
373
771

814
617
100
1,532

792
592
89
1,474

0
0
969

0
0
972

13

11

27
988
2
(16)
1,985
4,263
22,084

25
526
0
(11)
1,524
3,770
17,253

(Million yen)
As of December 31, 2022
Liabilities
Current liabilities
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Deposits received
Unearned revenue
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for stocks payment
Refund liabilities
Other
Total current liabilities
Non-current liabilities
Lease obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-5-

As of March 31, 2023

0
590
2,995
1,207
659
242
93
–

0
469
938
325
632
627
79
971

–

7

170
74
128
6,161

54
79
163
4,350

1
335
337
6,498

1
271
272
4,622

672
1,514
15,022(1,793)
15,415672
1,514
13,229(2,994)
12,422169
169
15,58522,084207
207
12,63017,253

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three Months Ended March 31

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Remuneration for directors (and other officers)
Salaries and allowances
Legal welfare expenses
Retirement benefit expenses
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for share awards
Provision of allowance for doubtful accounts
Rent expenses on land and buildings
Depreciation
Amortization of goodwill
Advertising expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Gain on cancellation of leases
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

For the three months ended
March 31, 2022
7,471
595
6,876

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(Million yen)
For the three months ended
March 31, 2023
8,746
676
8,069

177
1,810
329
95
804
1
44
0
280
106
27
222
662
4,564
2,311

177
2,251
403
122
971
7
52
6
318
124
29
558
890
5,913
2,156

1
–
10
11

2
16
4
23

3
0
0
4
2,319

6
4
0
10
2,170

0
0
2,319
313
367
681
1,638
1,638

0
0
2,169
221
462
684
1,485
1,485

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended March 31

ProfitOther comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

For the three months ended
March 31, 2022
1,638(Million yen)
For the three months ended
March 31, 2023
1,485

71
71
1,709

38
38
1,524

1,709

1,524

–

–

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(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes in case of significant changes in shareholders’ equity)
In accordance with the resolution of the Board of Directors meeting held on February 20, 2023, theCompany purchased 600,000 treasury shares. As a result, treasury shares increased by ¥1,368 million
during the first quarter ended March 31, 2023, standing at ¥2,994 million as of the end of the period.
(Accounting methods adopted particularly for the preparation of quarterly consolidated financial
statements)
The Company calculates the tax expenses of some of its subsidiaries in the quarterly consolidated
financial statements by reasonably estimating the effective tax rate after applying tax effect accounting
to profit before income taxes for the fiscal year that includes the first quarter ended March 31, 2023,
and by multiplying the profit before income taxes by the estimated effective tax rate.

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(Segment information, etc.)[Segment information]
For the three months ended March 31, 2022 (from January 1, 2022 to March 31, 2022)
Information on net sales and profit (loss) by reportable segment, and information on disaggregation of revenue(Million yen)
Reportable segment
Domestic
Recruitment
Business

Domestic Job
Offer
Advertising
Business

6,603

43

99

Segment total

Adjustment

498

7,144

–

7,144

35

192

327

–

327

6,703

78

690

7,471

–

7,471

6,703

78

690

7,471

–

7,471

8

4

9

21

(21)

–

6,711

82

699

7,493

(21)

7,471

2,300

(3)

22

2,319

–

2,319

Overseas
Business

Total

Net sales
Goods transferred at a point
in timeGoods transferred overtime
Revenue from contracts
with customers
Net sales to outside
customers
Intersegment net sales ortransfers
Total
Segment profit (loss)(Notes) 1. Segment profit (loss) is consistent with the profit before income taxes in the quarterly consolidated statements
of income.
2. The figures for the Domestic Recruitment Business reportable segment and the Overseas Business reportablesegment include amortization of goodwill of ¥18 million and ¥9 million, respectively.

For the three months ended March 31, 2023 (from January 1, 2023 to March 31, 2023)
Information on net sales and profit (loss) by reportable segment, and information on disaggregation of revenue(Million yen)
Reportable segment
Domestic
Recruitment
Business

Domestic Job
Offer
Advertising
Business

7,610

43

146

Segment total

Adjustment

668

8,322

–

8,322

29

247

424

–

424

7,756

73

916

8,746

–

8,746

7,756

73

916

8,746

–

8,746

–

4

5

9

(9)

–

7,756

77

922

8,756

(9)

8,746

2,161

(9)

17

2,169

–

2,169

Overseas
Business

Total

Net sales
Goods transferred at a point
in timeGoods transferred overtime
Revenue from contracts
with customers
Net sales to outside
customers
Intersegment net sales ortransfers
Total
Segment profit (loss)(Notes) 1. Segment profit (loss) is consistent with the profit before income taxes in the quarterly consolidated statements
of income.
2. The figures for the Domestic Recruitment Business reportable segment and the Overseas Business reportablesegment include amortization of goodwill of ¥18 million and ¥10 million, respectively.

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